BY ORDER OF THE AIR FORCE INSTRUCTION 65-503 …

1 BY ORDER OF THE secretary OF THE AIR FORCE AIR FORCE INSTRUCTION 65-503 4 FEBRUARY 1994 Incorporating Change 1, 23 February 2017 Financial Management US AIR FORCE COST AND PLANNING FACTORS COMPLIANCE WITH THIS PUBLICATION IS MANDATORY ACCESSIBILITY: This publication is available for downloading or ordering on the e-publishing website at: RELEASABILITY: There are no releasability restrictions on this publication. OPR: SAF/FMCE Supersedes: AFR 173-13, 31 October 1989 Certified by: SAF/FMC (Ms. Pamela C. Schwenke) Pages: 10 This INSTRUCTION implements AFPD 65-5, Cost and Economics. It contains official USAF cost and planning factors that Air FORCE activities use to estimate resource requirements and costs associated with Air FORCE FORCE structures, missions, and activities.

2 The INSTRUCTION addresses operating and support (O&S) cost estimates for Air FORCE weapon systems, primarily aircraft. The factors, which reflect Air FORCE and command-unique actual or projected operations costs, are for general estimates. Replace or combine them with more specific programming, operational, or activity data when it is available. SUMMARY OF CHANGES This interim change applies the following revisions: (1) Adds Table A60-1: Military Annual Standard Composite Pay Tool under section ; and (2) Adds Table A61-1: Man-Day Support Cost Estimating Tool under section Also, OPRs are added under section for each additional table change.

3 2 AFI65-503 4 FEBRUARY 1994 Section A Functional Area Responsibilities 1. Related Publications. See Attachment 1. 2. Office of the secretary of the Air FORCE : SAF/FMC. The Deputy assistant secretary of the Air FORCE (Cost and Economics) oversees the Cost and Planning Factor Program for the Air FORCE , including logistics, personnel, programming, inflation, and attrition factors. SAF/FMCCF. Cost Factors Division personnel develop logistics cost factors, issue guidance for the development of other factors, and validate factors prior to publication. Changes are published as required (when new information is available), but not less than once a year.

4 Factors and detailed explanatory notes are available electronically on the Financial Management Analysis Bulletin Board. If you develop cost estimates or need to build your own cost factors follow the instructions in the tables on the bulletin board. For information on accessing the bulletin board, call DSN 286-5850 or (703) 746-5850. Offices of Primary Responsibilities. Attachment 2 lists several other units that develop cost and planning factors. HQ USAF, Major Commands (MAJCOM), Field Operating Agencies (FOA), and Direct Reporting Units (DRU) Implement Cost and Planning Factor Policy. These organizations may publish unique factors as supplements to this INSTRUCTION .

5 One copy of any supplement should be sent to SAF/ FMCCF. Air FORCE Cost Analysis Improvement Group (AFCAIG). The AFCAIG approves logistics cost factors for use by US Air FORCE units. Section B General Information 3. Operating and Support (O&S) Costs. This INSTRUCTION presents cost and planning factors primarily used to develop and estimate O&S costs or resources needed for Air FORCE weapon systems. The O&S cost category is a major part of the Life-Cycle Cost (LCC) of a weapon system. Develop O&S cost estimates by accumulating personnel and material costs, both of a direct and indirect nature, which the Air FORCE incurs while operating, maintaining, and supporting the hardware and software of a weapon system.

6 Use cost factors to predict the resources needed by a weapon system for a budget year, or for a weapon system s economic life. Use of Factors. The five types of cost and planning factors can be used in a variety of studies or analyses; they are generally used for budget year or LCC purposes. Current Air FORCE policy is to use budget year factors over the estimated life of the program, with the exception of Contractor Logistics Support (CLS) as described below. Budget Year Factors. Use Factors**.exe file on the Financial Management Analysis Bulletin Board to get Budget Year logistics factors in developing the Air FORCE budget submission for a given fiscal year for the Future Years Defense Program (FYDP).

7 AFI65-503 4 FEBRUARY 1994 3 LCC Factors. O&S LCC factors attempt to account for the flow of costs throughout the economic life of a system. Life-cycle factors represent the cumulative average of actual prior year data, from initial operation through an average economic life, projected out to some future budget year. LCC factors are available for Contractor Logistic Support (CLS) aircraft only due to the wide fluctuations in CLS costs over the life of these weapon systems. Section C Cost and Planning Factors 4. Logistics Factors. Use variable logistics cost factors for programming and budgeting to increase and decrease baseline programs when the FORCE structure changes.

8 Fixed and variable factors build Program Objective Memorandums (POM) and Budget Estimate Submissions at HQ USAF. Use the detailed instructions in each table to build your changes or estimates. Table Descriptive Title A2-1 Logistics Cost Factors (Current Year) A3-1 Logistics Cost Factors (Budget Year) A4-1 Logistics Cost Factors (Budget Year + 1) Table Descriptive Title A5-1 Reserved for Future Use A6-1 Contractor Logistics Support (Budget Year) A7-1 Contractor Logistics Support (Budget Year +1) A9-1 Contractor Logistics Support (Life Cycle) A10-1 Unit Flyaway Costs A11-1 Munitions Acquisition Costs A12-1 Munitions Training Costs A13-1 Aviation Fuel Factors and Prices A14-1 Ground Vehicle O&M Costs A15-1 Aircraft Reimbursement Rates A16-1 Tuition Rate Factors 4 AFI65-503 4 FEBRUARY 1994 Personnel Factors.

9 Use these factors for cost studies, economic analyses, component cost analyses, Military Construction Projects (MCP), POM process, Fast-Payback Capital Investment Program (FASCAP), A-76 studies, as well as programming, budgeting, accounting, and recording payments from other government agencies. Detailed instructions on the use of these factors are included in the following tables: Table Descriptive Title A17-1 Typical Acquisition and Training Costs A18-1A/B Enlisted/Officer Personnel Acquisition Cost Per Graduate by Air FORCE Specialty Code A19-1 Standard Composite Rates by Grade A20-1 Military Pay Rates Per Unit of Time A21-1 Military Pay Rates by Flying Status/ Location A22-1 ANG/AGR Composite Pay Factors/Turnover Rates A23-1 AFRES Composite Pay Factors/Turnover Rates A24-1 PCS Cost Per Move A25-1 PCS Cost Per Work-year A26-1 Civilian Standard Composite Pay Rates, by Grade A27-1 Civilian Standard Composite Pay Rates, Major Categories A28-1 Civilian Standard Composite Pay Rates.

10 By MAJCOM/FOA A29-1 Dependents Per Military Sponsor A30-1 Retirement and Other Personnel Benefits Acceleration Factors Table Descriptive Title A31-1 Application of Civilian Base Pay Acceleration Factors A32-1 Application of Military Std Comp Rate Acceleration Factors A33-1 FASCAP Military Pay and Benefit Factors A34-1 Representative Officer Aircrew Training Costs A35-1 Representative Enlisted Aircrew Training Costs A60-1 Military Annual Standard Composite Pay Tool A61-1 Man-Day Support Cost Estimating Tool AFI65-503 4 FEBRUARY 1994 5 Programming Factors. Use Programming factors when you need to identify the manpower compositions of various aircraft for costing purposes.